Chamber lists 10 reasons to invest in Laos
Chamber lists 10 reasons to invest in Laos
The Lao National Chamber of Commerce and Industry has drawn up a list of reasons why foreign companies would be well advised to invest in Laos.
The Chamber has posted the information on its official website as part of efforts to promote investment in Laos.
The first reason given is that Laos enjoys political and economic stability. The Lao People's Revolutionary Party and the government have created political stability and committed to spur private investment, believing the private sector to be the driving force of economic growth.
The second reason cited is that Laos has an abundance of natural resources including water, minerals, sources of energy and forests, which can be developed using the proper technology and converted into commodities for export to international markets.
A low-cost workforce is the third reason given. The minimum wage, which the government recently approved, is just 624,000 kip per month. This is much lower than that paid in Thailand and other Asean nations.
The fourth reason is that Laos is situated in an area of economic growth, sharing as it does borders and common interests with Thailand, Vietnam, Cambodia and China. Laos offers a solid base from which investors can expand into the region
The fifth reason is that Laos is a land link within the Asean region and has access to a market of 500 million people, including southern China. Laos plans to build a high-speed railway from Vientiane to the Chinese border.
There are also plans to build a high-speed railway in Savannakhet, which will provide a transit route for goods being shipped between Thailand and Vietnam.
The sixth reason is that the government has established 10 Special Economic Zones, which come with a number of investment incentives.
The seventh reason is that the government has enacted laws on investment promotion, business and labour, all aimed at driving business development and expansion.
The eighth reason is that Laos enjoys privileges from 42 countries under the Generalised System of Preferences and has Normal Trade Relations with the USA because it is classified as a Least Developed Country.
In addition, the European Union and Japan have granted Laos trading privileges such as tax exemptions on imports where more than 200 listed items fall within a special quota. This means Lao products can access global markets with lower tariffs or completely duty free.
The ninth reason is that the government allows the private sector to set product prices in accordance with market demand. The tenth reason is that Laos offers investors various tax breaks including tax exemptions and tax holidays, and waives import tax on raw materials required for processing and re-export. Investors are also exempt from paying export tax.
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